In the previous year, the depreciation and amortization expenses were included in the
following captions:
kEUR Depreciation Amortization Total
Cost of sales -10,797 -2 -10,799
Selling expenses -562 -2,183 -2,745
Administrative expenses -2,045 -1,269 -3,314
Research and development costs -198 -1,651 -1,849
Total -13,602 -5,105 -18,707
6.8 Impairment of Goodwill and Intangible Assets
The expenses include impairment of goodwill associated with the cash-generating unit
"Trailer Systems" of kEUR 9,972 (previous year: kEUR 0) and "Powered Vehicle Systems" of
kEUR 6,024 (previous year: kEUR 0) and on intangible assets with indefinite useful lives of
kEUR 3,038 (previous year: kEUR 0). More details are illustrated in Note 8.
7 INCOME TAXES
The major components of income tax expense are:
kEUR 01/01/0812/31/08 01/01/0712/31/07
Current income taxes -5,859 -11,135
Deferred income taxes 3,065 15,539
Income tax reported in
the consolidated income statement -2,794 4,404
The effective income tax rate for the Group for the year ended December 31, 2008 is -12.59%
(previous year: -65.10%). The following table reconciles the actual to the expected income
tax expense for the Group in 2008, computed by applying the Group's corporate income tax
rate of 28.59% (previous year: 36.00%). For German entities, a corporate income tax rate
of 27.10% (previous year: 36.58%) was used, which consisted of a corporation tax of 15.83%
(including solidarity surcharge; previous year: 22.71%) and trade income tax of 11.27%
(previous year: 13.87%), taking into account that the trade income tax is not deductible since
the business taxation reform. For the North American subgroup, the 2008 income tax rate
remained unchanged and included a federal tax rate of 35.00% and a state tax rate of 1.10%.
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